[請益] about cobb-douglas production function
Suppose that the production function in operating is Cobb-Douglas with
diminishing returns but that there is a flow fixed cost.
Then the operating profit is p(theta)-f , where the multiplicative constant
is set at unity, theta>1 , and f is the flow fixed cost.
（There is no variable cost）
p is the product price.
My question is how to derive the profit equation p(theta)-f and
what the parameter theta is.
The result is cited form Dixit（1989）
" Entry and exit decision under uncertainty”.
Thanks!
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